The iBuyer Bottom Line

December 12, 2019

If you’ve been keeping up with the news lately, you’ve likely seen a recent story or two about the increasing popularity of iBuyers. What’s an iBuyer? Career Compass defines one as, “a company that has significant venture capital investment to position itself to purchase (and subsequently sell) property directly from and to the consumer. These companies are strategically positioned to work with real estate agents, but greatly prefer to act as a direct middle-entity between the seller and the buyer.”

iBuyers have been a more frequent topic of conversation this year, partially because of Zillow’s recent foray as an iBuyer into the San Diego real estate market. Earlier this fall, Zillow launched a new program in our region called “Zillow Offers”, which promises quick cash for home sellers. Zillow Offers already exists in 16 other markets – you can read about the specifics of the program in this article from The San Diego Union Tribune. However, Zillow isn’t the only player in the iBuyer game. Companies like Red Fin, iBuyer.com and Open Door are just a few examples of other current iBuyers.

While it might seem like an easy way to make quick money, many homeowners don’t realize what they’re giving away by working with an iBuyer. We created this side-by-side comparison which outlines the estimated costs of working with a real estate agent to sell your home, versus working with an iBuyer.

Whether you’ve owned your home for a couple of years or a couple of decades, there’s certainly plenty of blood, sweat and tears that come along with home ownership. You’ve made your mortgage payments on time and maybe you’ve even put in quite a bit of sweat equity in the form of improvements and upgrades. That brings me to the million-dollar question…

Do you really want the hard-earned equity that you’ve accumulated over the years given to an iBuyer?

We’d love to hear your thoughts on this new trend in the comments below! Remember, a real estate agent is still the best value when it comes to selling your home.

Are you thinking of making a move in 2020? Please feel free to reach out to me at homes@livininsd.com or 619.405.7673 to help get you started with the process.